| You call yourself a business guy but you aren't thinking with a business head in your posts. First off, freelance developers are also "business guys" because they are running their own businesses. Any "business guy" knows that prices are largely set by supply and demand. A developer charging a high rate is doing so because the market can bear that rate. There is no need for justification here, the demand takes care of that nicely. Just because a developer in India can do work for cheap doesn't mean he should. If he has world class development skills then he should be charging world class rates. Charging less because of location is a stupid business model and it's not reality. The reality is that there is less demand for their services (especially from the type of clients who are able to pay those higher prices) and they are charging accordingly. These guys are mediocre developers competing in a sea of mediocre developers. Also, I believe the idea that globalization is driving down prices isn't reality. I'm a U.S. citizen living in the Philippines and I have seen that people are able to charge low rates because they are living in poverty. You can live for a lot cheaper in the Philippines relative to most of the U.S. but you get what you pay for. Most expats who move here are able to live cheaper simply because they are simplifying their lifestyle. Once you start ratcheting up your lifestyle to get anywhere near the lifestyle you would have in the West, then you get back to the same Western level of spending. I believe cheap developers abroad is going to be a short lived phenomenon. As developers get a taste of the money they can make, then they are going to want to improve their lifestyle and their rates are going to go up. Cities like Shanghai and Moscow (two countries with a reputation for cheap developers) are as expensive to live in as New York City. Also, as the economies of poor countries heat up, then a lot of their development pools are going to be eaten up by domestic demand. The reason that developers here on hacker news claim that outsourcers do low quality work is because we see it all the time. That doesn't mean all projects are total crap, but a large number of them are. Sure, the project may result in something that works, but anything can be painted up to look like a success. However, that house of cards may come crashing down when a strong breeze comes along. When that happens you lose money and you look bad. Clients who have a real budget know this and they know that even $150 / hr developers are a small price to pay to get things done right. |